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Minister should go back to the drawing board

Issued : Tuesday 9 March, 2010

On 3 March 2010 the Joint Committee on Communications, recommended the annulment of this Broadcasting Levy Scheme. All parties supported this motion. All parties, Government and Opposition shared a feeling of outrage at the imposition this scheme will have on the independent sector, particularly on the smaller local radio station.

We have an opportunity now to make a stand again and to put things right. We can ensure that a new and fair scheme is put in place if we vote for the amendment tabled here. Over the last few days Government shenanigans has led to an abuse, in my view , of parliamentary procedures and now a meaningless motion being presented here..

It states that we the House note the commitment of the Minister and the BAI to address the concerns of the broadcasting sector.

It is the Minister and the BAI that has got us into this mess. The reality is that both parties colluded in the exorbitant increase in the budget to 7.6 million euro. This figure was agreed by Minister Ryan and the Minister for Finance and then was made known by way of parliamentary question.

The formula used to apportion costs across the sector was devised by the BAI. It is grossly unfair and militates directly against the smaller local radio station.

We don't need ineffectual posturing and crocodile tears from the Government. We need this levy scheme taken off the table and a new one drawn up. This is not just about the Budget for 2010 but about future and past budgets. Initially Minister Ryan had told the House that the broadcasting sector would have to pay for the budget of 1.25 million for 3 months of 2009. Then he admitted under questioning that the Authority had paid that budget out of its own resources already.

This was a bill that he was going to force the broadcasters to pay e let the cat out of the bag.

So yes, of course, we need a revised, reduced budget but that alone is not enough. If the levy scheme continues the work postponed will still have to be paid for in future years and it will be the unfortunate independent sector that will be bled dry.

Let's look at the facts

The budget increase for the BAI represents over 40% increase.
The cost of the levy represents about 1.7% of total advertising revenue a 70% increase at a time when broadcasters have had to cut costs by anywhere between 15 and 25%.

The formula set in this SI militates against the smaller operator. The bigger the player the bigger the discount. Where on earth is the justice in that? I understand that 50% of the levy is paid by RTE yet RTE get far more than 50% of the revenue.
Even a simple percentage across the board payment is fairer than the one now at issue.

Unless government deputies show their mettle as they did at the Committee. Minister Ryan will steamroll into force a levy scheme that will crucify the independent sector and lead to staff lay offs.

Instead he should be sent back to the drawing board. Against best advice he established a new quango, then he sanctioned a lavish budget and is about to force those least able to pay to carry a disproportionate burden of cost.

No broadcaster is refusing to contribute to regulation. All they are asking for is fair play. We can ensure they get it by voting for the amendment.